NANAIMO – Home sales in the VIREB area cooled slightly in June but were still significantly higher than reported one year ago.
In June 2016, 713 single-family homes sold on the MLS® System compared to 636 last June, an increase of 12 per cent. Month over month, sales decreased by seven per cent from the 767 sales processed in May 2016. Last month’s active listings for single-family homes totalled 1,621, down 33 per cent from the 2,425 reported in June 2015, a record low. The last time inventory levels neared the 2,000 mark was in 2006, when they dropped to 2,029.
As noted last month, the robust housing market in British Columbia, particularly in the southern half of the province, is solidly based on a healthy GDP, substantial job growth, and a growing population.
“The provincial economy is firing on all cylinders and continues to lead the country by a significant margin, which is fuelling the housing market,” says Brendon Ogmundson, BCREA Economist. “Job growth in B.C. is twice that of Ontario, our closest economic competitor, and is especially strong on the Lower Mainland and in Victoria.”
Ogmundson adds that although BCREA does expect to see some price relief in the Vancouver housing market, current market conditions are expected to prevail for the rest of 2016.
Margo Hoffman, VIREB 2016 President, says that sales activity typically slows down in the summer, which likely accounts for June’s modest decrease in sales. However, lack of inventory is also a contributing factor.
“We’ve been saying the same thing for months, but low inventory is the primary challenge facing buyers and agents right now,” says Hoffman. “Although we’re in a seller’s market, homeowners are holding back because they’re worried they won’t find another property to buy. And, when houses come onto the market, they’re snapped up very quickly.”
The lack of inventory is also contributing to rising benchmark prices for single-family homes, townhouses, and apartments. Despite those increases, however, the Vancouver Island housing market continues to be affordable compared to the Lower Mainland and Victoria.
“With the benchmark price of a single-family home ranging from $201,800 in Port Alberni to $433,400 in the Parksville-Qualicum area, home buyers have a lot of affordable options on Vancouver Island,” says Hoffman.
In June 2016, the benchmark price of a single-family home in the VIREB area was $373,200, up 11 per cent from one year ago. The benchmark price of an apartment rose by 6.53 per cent to hit $202,600 while the benchmark price of a townhouse increased to $275,200, up 10.56 per cent from one year ago. Benchmark pricing tracks the value of a typical home in the reported area. The average price of a single-family home last month was $410,259, up 14 per cent from June 2015.
The June 2016 benchmark price of a single-family home in the Campbell River area was $291,900, a three per cent increase over 2015. In the Comox Valley, the benchmark price was $364,400, up nine per cent from 2015. Duncan reported a benchmark price of $325,400, an increase of nine per cent over the same month in 2015. Nanaimo’s benchmark price rose approximately 15 per cent to $402,100 while the Parksville-Qualicum area saw its benchmark price rise by 16 per cent to $433,400. The price of a benchmark home in Port Alberni was $201,800, up just under six per cent from one year ago.